1 / 35

Chapter 3 Food Vendors Who Should I Buy t his Stuff From?

Chapter 3 Food Vendors Who Should I Buy t his Stuff From?. Chapter Outline . Vendor-Selection Criteria Overall Value. Learning Objectives. Understand how methods used to select a vendor affect an F&B operation’s cost of sales. Develop selection criteria based on the operation’s needs.

lyn
Download Presentation

Chapter 3 Food Vendors Who Should I Buy t his Stuff From?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 3Food VendorsWho Should I Buy this Stuff From?

  2. Chapter Outline • Vendor-Selection Criteria • Overall Value

  3. Learning Objectives • Understand how methods used to select a vendor affect an F&B operation’s cost of sales. • Develop selection criteria based on the operation’s needs. • Ability to investigate potential suppliers and assess their overall fit into the operation.

  4. Learning Objectives • Discuss the implications of various pricing systems, ordering procedures, and credit terms. • Describe perceived value and its relation to product quality. • Describe the difference between AP price and EP cost.

  5. Introduction • When “hiring” a vendor: • Review multiple applicants • Interview several candidates • National chains provide purchasing support • Still must buy some items locally • Some vendors have exclusive rights: your choice is to take it or leave it

  6. Vendor-Selection Criteria • References • Compatibility/Chemistry • Size of the Firm • Location • Delivery Schedule • Storage Availability

  7. Vendor-Selection Criteria • Free Samples • Social Responsibility • Lead Time • Returns Policy • Minimum Order Requirements • Purveyor’s Experience

  8. Vendor-Selection Criteria • Technological Capability • Ordering Procedures • Reciprocal Buying • Willingness to Barter • Cooperation in Bid Procedures • Long-Term Contracts

  9. Vendor-Selection Criteria • Credit Terms • Cost-Plus Purchasing • One-Stop Shipping • Standing Orders • Vendor’s Consulting Support

  10. Vendor-Selection Criteria • References • Join organizations to meet other buyers • National Restaurant Association NRA (local chapter) • American Culinary Federation (ACF) (local chapter) • Ask about vendors in the area

  11. Vendor-Selection Criteria • References (cont.) • Ask for references from vendors and call them! • Is the vendor fair, honest? • Are drivers easy to work with? • Are deliveries made on time? • How are credits handled? • Will the vendor make emergency deliveries?

  12. Vendor-Selection Criteria • Compatibility/Chemistry • Note positive or negative vibes • Are you comfortable with the person? • Hopefully this is a long-term relationship

  13. Vendor-Selection Criteria • Size of the Firm • Large firms • Adequate inventories • Ability to meet your needs • May be impersonal • Small or specialty vendors • May not have large inventories • More personal service • May cost in the long run in stockouts and shortages

  14. Vendor-Selection Criteria • Location • The closer the better • Staff members may need to pick up items • Will-call or cash and carry buying will be easier • Ideal world – between your home and the restaurant

  15. Vendor-Selection Criteria • Delivery Schedule • May not always have a choice as to time • Ensure that a knowledgeable person is available to receive delivery • Don’t use a purveyor who uses third-party shippers

  16. Vendor-Selection Criteria • Storage Availability • Sometimes available after a big order • Stockless purchase play – pay for the order but receive it in small amounts

  17. Vendor-Selection Criteria • Free Samples • Good for trying new products • May make some managers nervous • Super Bowl tickets aren’t “free samples”

  18. Vendor-Selection Criteria • Social Responsibility • Do manufacturer’s employees receive a living wage? • Does the vendor buy from minority- or women-owned firms?

  19. Vendor-Selection Criteria • Lead Time • Time between order and arrival of shipment • The shorter the better • Lets you make better ordering decisions • Saves you money in the long-run • Helps keep inventories at manageable level

  20. Vendor-Selection Criteria • Returns Policy • Is it a hassle to get a credit to your account? • Must you pay a fee for the goods to be picked up? • Is there a restocking fee? • Best when the driver gives you a credit slip right on the spot

  21. Vendor-Selection Criteria • Minimum Order Requirements • Meeting the minimum order requirement • May qualify you for free delivery • May give you will-call privileges • May be more than you can do – so find another vendor

  22. Vendor-Selection Criteria • Purveyor’s Experience • Do you want to be a new purveyor’s guinea pig? • Financial stability is an issue here • Look for a good track record when seeking a vendor

  23. Vendor-Selection Criteria • Technological Capability • Accessible online? • Product availability • New products • Recipes • Current promotions • Still need face-to-face contact • Trends • Gossip

  24. Vendor-Selection Criteria • Ordering Procedures • Online is preferable • Avoid complicated ordering systems

  25. Vendor-Selection Criteria • Reciprocal Buying • “I buy from you if you buy from me” • Not a good idea • Break even arrangement at best • Often supplier will take you for granted and you will lose services

  26. Vendor-Selection Criteria • Willingness to Barter • Tradeouts • Is vendor a member of a barter group? • A $500 dinner may only cost you $200 • Food vendors don’t usually trade • Advertising account executives like these kinds of trades

  27. Vendor-Selection Criteria • Cooperation in Bid Procedures • Request for Quote • Good to shop around occasionally • Current vendor may be responsive • Current vendor may be secretive and not respond • Online systems provide information immediately

  28. Vendor-Selection Criteria • Long-term Contracts • Some vendors may not commit to long-term prices or product availability • Most vendors want large buying commitments before committing to long-term contracts

  29. Vendor-Selection Criteria • Credit Terms • Ask about • Financing • Discounts • Cash on delivery • Prompt payments • Payment in advance • Deposits for equipment and packaging • Credit Period

  30. Vendor-Selection Criteria • Cost-Plus Purchasing • Definition: purveyor’s cost plus negotiated percentage markup • Buyers have a love/hate relationship with this process • Vendors don’t like cost-plus – they take on more risk

  31. Vendor-Selection Criteria • One-Stop Shopping • Also known as: sole-source, prime-vendor, preferred-provider or single-source procurement • Easy for the purchaser • May cost more but result in labor savings

  32. Vendor-Selection Criteria • Standing Orders • Driver leaves enough product to bring you up to par stock • Typical items: dairy products, bread, soft drinks • Remember to watch the drivers

  33. Vendor-Selection Criteria • Vendor’s Consulting Support • Source of product information • Networking source • When buying equipment, vendor may help with health and/or building permits

  34. Overall Value • Value – cost of the product plus additional supplier services • Edible portion (EP) cost—servable or usable cost • As-purchased (AP) price—price of product on delivery • Better to pay higher AP if it results in lower EP

  35. Most Important Vendor-Selection Criteria • It’s really up to you • Most buyers want • Consistent product quality • Supplier services • AP price • Look for consistency, dependability, loyalty and trust

More Related